Financing needs of small businesses

Notes

Financing needs of small businesses

SMEs need cash to fund their working capital.

They often have very little credit offered to them but have to offer credit to customers to be competitive

They also need to fund advertising as they are new to the market and fund initial capital expenditure of setting up the business

Not surprisingly most businesses fail within 2 years

Even after the 2 years - the problems aren’t over - as then they need to fund growth and getting more investment can then prove difficult…

Notes